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0 pointssudofail7y ago0 comments

I'd just like to point out that your figures don't add up. First of all, you're not taking into account that Sweden has a progressive tax rate, like the US. The figure you quoted in your second link is for the highest marginal tax rate.

If you were to be consistent, you could use the figure for America's marginal tax rate listed in your second article, which is 37%. So apples to apples comparison would be that the US pays $22,000 in taxes at the highest marginal rate on 60k.

Keep in mind that the US also has state income tax, which can be upwards of an additional 15%.

Anyway, these figures are all kinds of wrong. You need to account for the progressive tax rate for each country, the state taxes you might be subject to, and the tax benefits / write offs that are available to you for your tax bracket.

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skrowl7y ago

Sweden also has a 25% VAT (sales) tax on just about everything you buy there. After they rake hard from your paycheck they rake hard again when you spend what's left.

sudofailOP7y ago

Sure, but my point is that these sorts of comparisons are complicated, and the facts matter. Anyone can hand wave the figures and come up with favorable comparisons by including or omitting important figures. I don't think it's fair to make simplistic comparisons and say that Sweden pays 24k more in taxes on 60k income.

phil217y ago

Every time I've sat down to do the actual math the difference between "typical HN wages in a high cost state" (call it $200k/yr) to western europe - the numbers are always within a 10% difference. Everyone likes looking at just the federal tax rate and ignores state income tax, local income tax, SS/Medicare tax (which is massive), and real estate taxes. I do ignore VAT and sales taxes typically since they are so difficult to calculate effectively.

When you add everything up, it really comes out that the US isn't very low cost comparatively. The striking thing for me is how much more progressive US taxes are than in Europe - where even the lower middle class seem to get taxed heavily.

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roberto7y ago

Also, you get more from the taxes than just healthcare. Free education, eg.

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